Ethereum has the potential to extend its ongoing upside move towards or above $1,500.

The second-largest cryptocurrency broke above a consolidation price channel on Wednesday, breaking its upper trendline on surging volumes. So it appears, the channel is an Ascending Triangle that traders perceive as a bullish continuation indicator.

An Ascending Triangle structure develops when an asset fluctuates between a horizontal resistance line to form swing highs and a rising trendline to form swing lows.

Therefore, if the asset trades upward before forming the said structure, its potential for continuing the trend higher increases following a breakout move through the horizontal line; Typically, the breakout target lurks near the level at a distance equal to the length of the previous uptrend move, otherwise known as “Flagpole.”

Ethereum formed a similar structure following its explosive move from $757 to $1,169. The Triangle pattern established a horizontal resistance line near $1,127. The ETH/USD exchange rate broke the level to the upside during the European session Wednesday, reaching an intraday high of $1,170.

The price entered the colored region, as shown in the chart above. It held the history of sending ETH/USD lower due to higher selling sentiment. So it appears, traders with a short-term outlook profited from the pair’s intraday top on Wednesday as well. Nevertheless, the price remained above the horizontal line, signaling its potential to extend its breakout move upward.

A further break above Ethereum’s session high of $1,168 could prompt traders to eye the Ascending Channel’s breakout target. The flagpole height before the pattern’s formation is around $395. That roughly puts ETH/USD en route to over $1,500.

More evidence of a potential Ethereum rally comes from its retail demand. Nugget News Founder Alex Saunders shared a single-day Bitcoin and Ethereum volume chart sourced from itBit, a digital asset platform owned by PayPal’s crypto services provider Paxos. He said:

“Retail demand is absolutely sky rocketing for BTC and ETH with on track to smash their highest single-day volume of $110M. The general public is catching the magic internet money bug, just as a wave of institutional money has begun pouring in.”

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